1695 小麦ＥＴＦ 2021-05-07 09:00:00
令和２年12月期 決算短信（令和２年1月1日～令和２年12月31日） [pdf]
令和２年12月期 決算短信（令和２年1月1日～令和２年12月31日）
令和3年5月7日
上場取引所 東京証券取引所
銘柄名 コード番号 連動対象指標 主要投資資産 売買単位
WisdomTree ブロード上場投資信託 1684 ブルームバーグ総合商品指数 （注2） 10
天然ガス、原油、ガソリ
WisdomTree エネルギー上場投資信託 1685 ブルームバーグエネルギー商品指数 10
ン、灯油
アルミニウム、銅、ニッ
WisdomTree 産業用金属上場投資信託 1686 ブルームバーグ産業用金属商品指数 10
ケル、亜鉛
WisdomTree 農産物上場投資信託 1687 ブルームバーグ農産物商品指数 （注3） 10
小麦、とうもろこし、大
WisdomTree 穀物上場投資信託 1688 ブルームバーグ穀物商品指数 10
豆
WisdomTree 天然ガス上場投資信託 1689 ブルームバーグ天然ガス商品指数 天然ガス 100
ﾌﾞﾙｰﾑﾊﾞｰｸﾞWTI原油ﾏﾙﾁﾃﾅｰｲｸｾｽﾘﾀｰﾝ
WisdomTree WTI原油上場投資信託 1690 WTI原油 10
指数(注１)
WisdomTree ガソリン上場投資信託 1691 ブルームバーグガソリン商品指数 ガソリン 10
WisdomTree アルミニウム上場投資信 ブルームバーグアルミニウム商品指
1692 アルミニウム 100
託 数
WisdomTree 銅上場投資信託 1693 ブルームバーグ銅商品指数 銅 10
WisdomTree ニッケル上場投資信託 1694 ブルームバーグニッケル商品指数 ニッケル 10
WisdomTree 小麦上場投資信託 1695 ブルームバーグ小麦商品指数 小麦 100
WisdomTree とうもろこし上場投資信 ブルームバーグとうもろこし商品指
1696 とうもろこし 100
託 数
WisdomTree 大豆上場投資信託 1697 ブルームバーグ大豆商品指数 大豆 10
（注1） 令和2年7月29日より、連動対象指標を『ﾌﾞﾙｰﾑﾊﾞｰｸﾞWTI原油ﾏﾙﾁﾃﾅｰｲｸｾｽﾘﾀｰﾝ指数』に変更しております。
（注2） 天然ガス、WTI原油、ブレンド原油、ガソリン、灯油、アルミニウム、銅、亜鉛、ニッケル、金、銀、生体牛、赤身豚肉、
（注3） 小麦、トウモロコシ、大豆、砂糖、綿花、コーヒー、大豆油
外 国 投 資 法 人 ウィズダムツリー・コモディティ・セキュリティーズ・リミテッド
代 表 者 名 クリストファー・フォールズ
管 理 会 社 ウィズダムツリー・マネジメント・ジャージー・リミテッド
https://www.wisdomtree.eu/en-gb/resource-library/prospectus-and-regulatory-reports#tab-2A942D42-5AA1-4008-9080-3C2DADB050A7
代 表 者 名 スティーブン・ロス
問合せ先責任者 ＴＭＩ総合法律事務所 （中川秀宣） TEL 03-6438-5660
有価証券報告書提出予定日 令和３年6月30日提出
分配金支払い開始予定日 該当なし
Ⅰファンドの運用状況
1. 2020年12月決算期の運用状況（令和２年1月1日～令和２年12月31日）
(1)資産内訳 （百万円未満切捨て）
主要投資資産 合計（資産）
構成比
金額 金額 構成比
百万円 ％ 百万円 ％
WisdomTree ブロード上場投資信託 2020年12月決算期 9,515 (100) 9,515 (100)
2019年12月決算期 22,717 (100) 22,717 (100)
百万円 ％ 百万円 ％
WisdomTree エネルギー上場投資信託 2020年12月決算期 3,193 (100) 3,193 (100)
2019年12月決算期 5,754 (100) 5,754 (100)
百万円 ％ 百万円 ％
WisdomTree 産業用金属上場投資信託 2020年12月決算期 21,544 (100) 21,544 (100)
2019年12月決算期 20,273 (100) 20,273 (100)
百万円 ％ 百万円 ％
WisdomTree 農産物上場投資信託 2020年12月決算期 15,810 (100) 15,810 (100)
2019年12月決算期 22,838 (100) 22,838 (100)
百万円 ％ 百万円 ％
WisdomTree 穀物上場投資信託 2020年12月決算期 3,316 (100) 3,316 (100)
2019年12月決算期 2,389 (100) 2,389 (100)
百万円 ％ 百万円 ％
WisdomTree 天然ガス上場投資信託 2020年12月決算期 5,646 (100) 5,646 (100)
2019年12月決算期 4,429 (100) 4,429 (100)
百万円 ％ 百万円 ％
WisdomTree WTI原油上場投資信託 2020年12月決算期 156,048 (100) 156,048 (100)
2019年12月決算期 53,009 (100) 53,009 (100)
百万円 ％ 百万円 ％
WisdomTree ガソリン上場投資信託 2020年12月決算期 637 (100) 637 (100)
2019年12月決算期 391 (100) 391 (100)
百万円 ％ 百万円 ％
WisdomTree アルミニウム上場投資信 2020年12月決算期 4,488 (100) 4,488 (100)
託
2019年12月決算期 4,688 (100) 4,688 (100)
百万円 ％ 百万円 ％
WisdomTree 銅上場投資信託 2020年12月決算期 37,435 (100) 37,435 (100)
2019年12月決算期 19,473 (100) 19,473 (100)
百万円 ％ 百万円 ％
WisdomTree ニッケル上場投資信託 2020年12月決算期 50,816 (100) 50,816 (100)
2019年12月決算期 57,458 (100) 57,458 (100)
百万円 ％ 百万円 ％
WisdomTree 小麦上場投資信託 2020年12月決算期 6,123 (100) 6,123 (100)
2019年12月決算期 6,621 (100) 6,621 (100)
百万円 ％ 百万円 ％
WisdomTree とうもろこし上場投資信 2020年12月決算期 3,486 (100) 3,486 (100)
託
2019年12月決算期 2,951 (100) 2,951 (100)
百万円 ％ 百万円 ％
WisdomTree 大豆上場投資信託 2020年12月決算期 1,227 (100) 1,227 (100)
2019年12月決算期 1,008 (100) 1,008 (100)
（注） 主要投資資産は、令和３年4月１日午前零時（ロンドン時間2021年3月31日午後4時）現在のものとしてブルームバーグに
よって表示される為替レート（スポット・レート）（1米ドル＝110.495円、1ポンド152.476円）に基づいて円換算して
います。(以下同じ。)
(2)設定・償還実績
前営業期間末 設定口数 償還口数 当営業期間末
発行済口数 発行済口数
(①) (②) (③) （①+②-③）
千口 千口 千口 千口
WisdomTree ブロード上場 2020年12月決算期 18,853 3,145 11,376 10,621
投資信託
2019年12月決算期 27,052 5,039 13,238 18,853
千口 千口 千口 千口
WisdomTree エネルギー上 2020年12月決算期 8,578 28,053 23,130 13,501
場投資信託
2019年12月決算期 11,193 23,178 25,792 8,578
千口 千口 千口 千口
WisdomTree 産業用金属上 2020年12月決算期 9,767 20,676 15,536 14,906
場投資信託
2019年12月決算期 17,104 32,916 40,254 9,767
千口 千口 千口 千口
WisdomTree 農産物上場投 2020年12月決算期 53,024 15,963 38,599 30,388
資信託
2019年12月決算期 76,872 36,303 60,151 53,024
千口 千口 千口 千口
WisdomTree 穀物上場投資 2020年12月決算期 6,771 3,483 1,704 8,550
信託
2019年12月決算期 6,910 420 559 6,771
千口 千口 千口 千口
WisdomTree 天然ガス上場 2020年12月決算期 2,007,070 13,587,526 11,282,269 4,312,327
投資信託
2019年12月決算期 955,899 2,153,387 1,102,217 2,007,070
千口 千口 千口 千口
WisdomTree WTI原油上場投 2020年12月決算期 57,427 973,821 701,356 329,892
資信託
2019年12月決算期 72,797 110,029 125,398 57,427
千口 千口 千口 千口
WisdomTree ガソリン上場 2020年12月決算期 156 1,167 1,013 309
投資信託
2019年12月決算期 142 422 409 156
千口 千口 千口 千口
WisdomTree アルミニウム 2020年12月決算期 11,532 35,174 32,438 14,268
上場投資信託
2019年12月決算期 24,501 43,275 56,244 11,532
千口 千口 千口 千口
WisdomTree 銅上場投資信 2020年12月決算期 8,636 20,189 18,059 10,765
託
2019年12月決算期 6,927 13,446 11,738 8,636
千口 千口 千口 千口
WisdomTree ニッケル上場 2020年12月決算期 34,915 14,900 20,429 29,386
投資信託
2019年12月決算期 40,759 10,956 16,800 34,915
千口 千口 千口 千口
WisdomTree 小麦上場投資 2020年12月決算期 82,397 156,493 161,812 77,078
信託
2019年12月決算期 102,198 33,485 53,286 82,397
千口 千口 千口 千口
WisdomTree とうもろこし 2020年12月決算期 34,725 82,099 78,600 38,224
上場投資信託
2019年12月決算期 38,418 27,077 30,769 34,725
千口 千口 千口 千口
WisdomTree 大豆上場投資 2020年12月決算期 542 905 961 487
信託
2019年12月決算期 923 672 1,052 542
（注） 上記の設定・償還実績については、営業期末時点の未決済上場投信を含んでいません。
(3)基準価額
売買単位当たり基準価額
総資産 負債（注） 資産 （（③/当営業期間末
発行済口数）×売買単位）
百万円 百万円 百万円 円
WisdomTree ブロー
ド上場投資信託 2020年12月決算期 9,515 - 9,515 8,958
2019年12月決算期 22,717 - 22,717 12,049
百万円 百万円 百万円 円
WisdomTree エネル 3,193 3,193 2,365
2020年12月決算期 -
ギー上場投資信託
2019年12月決算期 5,754 - 5,754 6,707
百万円 百万円 百万円 円
WisdomTree 産業用 2020年12月決算期 21,544 - 21,544 14,452
金属上場投資信託
2019年12月決算期 20,273 - 20,273 20,756
百万円 百万円 百万円 円
WisdomTree 農産物
2020年12月決算期 15,810 - 15,810 5,202
上場投資信託
2019年12月決算期 22,838 - 22,838 4,307
百万円 百万円 百万円 円
WisdomTree 穀物上
2020年12月決算期 3,316 - 3,316 38,789
場投資信託
2019年12月決算期 2,389 - 2,389 35,295
百万円 百万円 百万円 円
WisdomTree 天然ガ
2020年12月決算期 5,646 - 5,646 130
ス上場投資信託
2019年12月決算期 4,429 - 4,429 220
百万円 百万円 百万円 円
WisdomTree WTI原油
2020年12月決算期 156,048 - 156,048 4,730
上場投資信託
2019年12月決算期 53,009 - 53,009 9,230
百万円 百万円 百万円 円
WisdomTree ガソリ
2020年12月決算期 637 - 637 20,571
ン上場投資信託
2019年12月決算期 391 - 391 25,049
百万円 百万円 百万円 円
WisdomTree アルミ
2020年12月決算期 4,488 - 4,488 31,457
ニウム上場投資信託
2019年12月決算期 4,688 - 4,688 40,651
百万円 百万円 百万円 円
WisdomTree 銅上場
2020年12月決算期 37,435 - 37,435 34,772
投資信託
2019年12月決算期 19,473 - 19,473 22,549
百万円 百万円 百万円 円
WisdomTree ニッケ 2020年12月決算期 50,816 - 50,816 17,292
ル上場投資信託
2019年12月決算期 57,458 - 57,458 16,456
百万円 百万円 百万円 円
WisdomTree 小麦上
2020年12月決算期 6,123 - 6,123 7,944
場投資信託
2019年12月決算期 6,621 - 6,621 8,035
百万円 百万円 百万円 円
WisdomTree とうも
2020年12月決算期 3,486 - 3,486 9,121
ろこし上場投資信託
2019年12月決算期 2,951 - 2,951 8,500
百万円 百万円 百万円 円
WisdomTree 大豆上
2020年12月決算期 1,227 - 1,227 25,187
場投資信託
2019年12月決算期 1,008 - 1,008 18,577
（注1） 売買単位は、総合商品指数、エネルギー商品指数、産業用金属商品指数、農産物商品指数、原油、ガソリン、銅、
ニッケル、及び大豆については10口、穀物商品指数、天然ガス、アルミニウム、小麦及びとうもろこしについて
は100口となります。
（注2） 商品上場投資信託1単位当たりの資産は、商品上場投資信託1単位当たりの基準価額に基づいたものとなってい
ます。商品上場投資信託1単位当たりの基準価額は、相応する商品上場投資信託1単位当たりの商品契約の価
格に相当するものとなります。各々の商品上場投資信託の裏付けとなっている商品契約の総価値は、相応する商
品上場投資信託の残高と等しくなります。このために、純資産額は零となり、総資産額は、商品上場投資信託の
裏付けとなる商品契約の総額と等しくなります。
［参考］外国投資法人の財政状態
総資産額 総負債額 投資主持分額
百万円 百万円 百万円
2020年12月決算期 469,211 465,698 3,513
2019年12月決算期 305,730 307,067 -1,336
(注1) 商品上場投資信託は、期限の定めのない、請求権の限定されている発行体による債務です。全出資口は、親会社
社であるウィズダムツリー・セキュリティーズ・リミテッドにより保有されています。投資主持分額は、
ら総負債額を差し引いたものです。
2. 会計方針の変更
① 会計基準等の改正に伴う変更 有・無
② ①以外の変更 有・無
WisdomTree Commodity Securities
Limited
Registered No: 90959
Report and Financial Statements for the
Year ended 31 December 2020
WisdomTree Commodity Securities Limited
Contents
Management and Administration 1
Directors’ Report 2-6
Statement of Directors’ Responsibilities 7
Independent Auditor’s Report 8-15
Statement of Profit or Loss and Other Comprehensive Income 16
Statement of Financial Position 17
Statement of Cash Flows 18
Statement of Changes in Equity 19
Notes to the Financial Statements 20-36
www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Management and Administration
Directors Administrator
Stuart Bell R&H Fund Services (Jersey) Limited
Christopher Foulds Ordnance House
Steven Ross PO Box 83
Peter Ziemba 31 Pier Road
St Helier
Jersey, JE4 8PW
Registered Office Registrar
Ordnance House Computershare Investor Services (Jersey) Limited
31 Pier Road Queensway House
St Helier Hilgrove Street
Jersey, JE4 8PW St Helier
Jersey, JE1 1ES
Manager Trustee
WisdomTree Management Jersey Limited The Law Debenture Trust Corporation plc
Ordnance House Fifth Floor
31 Pier Road 100 Wood Street
St Helier London, EC2V 7EX
Jersey, JE4 8PW United Kingdom
Commodity Contract Counterparty Commodity Contract Counterparty
Merrill Lynch International Citigroup Global Markets Limited
2 King Edward Street Citigroup Centre
London, EC1A 1HQ Canada Square, Canary Wharf
United Kingdom London, EC14 5LB
United Kingdom
Auditor Jersey Legal Advisers
Ernst & Young LLP Mourant Ozannes
Liberation House 22 Grenville Street
Castle Street St Helier
St Helier Jersey, JE4 8PX
Jersey, JE1 1EY
Company Secretary
R&H Fund Services (Jersey) Limited
Ordnance House
31 Pier Road
St Helier
Jersey, JE4 8PW
-1- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report
The directors of WisdomTree Commodity Securities Limited (“CSL” or the “Company”) submit herewith the
annual report and financial statements of the Company for the year ended 31 December 2020.
Directors
The names and particulars of the directors of the Company during and since the end of the financial year are:
Stuart Bell
Christopher Foulds (Appointed 15 April 2020)
Hilary Jones (Resigned 15 April 2020)
Steven Ross
Peter Ziemba
Directors’ Interests
No director has an interest in the Shares of the Company as at the date of this report.
Principal Activities
The Company’s principal activity is the issue and listing of commodity securities (“Commodity Securities”). The
Company’s portfolio of Commodity Securities includes classic, longer dated, short and leveraged Commodity
Securities.
Commodity Securities are undated secured limited recourse financial instruments designed to track the price
of commodity futures, and give investors an exposure similar to that which could be achieved by managing a
fully cash-collateralised position in near-term futures contracts, less applicable fees. However, unlike
managing a futures position, Commodity Securities involve no need to roll from one futures contract to another,
no margin calls, and no other brokerage or other costs in holding or rolling futures contracts (although security
holders incur costs in holding Commodity Securities). No trading or management of futures contracts is
required by the Company.
Commodity Securities are backed by commodity contracts (“Commodity Contracts”) with terms corresponding
to the terms of Commodity Securities. The Company gains exposure to the movements in the Commodity
Indices by holding corresponding Commodity Contracts. The Company is currently party to two facility
agreements, one with Citigroup Global Markets Limited (“Citigroup”) and one with Merrill Lynch International
(“Merrill Lynch”) (together the “Commodity Contract Counterparties”), enabling the Company to create and
cancel Commodity Contracts on an ongoing basis.
Each time Commodity Securities are issued or redeemed, matching Commodity Contracts between the
Company and a Commodity Contract Counterparty are created or cancelled by the Company.
The price of each class of Commodity Security is calculated on a daily basis and reflects movements in the
Commodity Index relevant to that class since the previous day, adjusted by any applicable fees. Therefore,
the return for a particular class of Commodity Security will primarily be based on the performance of the
relevant Commodity Index.
The Company earns a management fee and a licence allowance based upon the number of Commodity
Securities in issue. These fees are expressed as an annual percentage, calculated on a daily basis and
reflected in the net asset value (“NAV”) of the Commodity Securities on a daily basis, and paid monthly in
arrears.
The Company has entered into a service agreement with WisdomTree Management Jersey Limited (“ManJer”
or the “Manager”), whereby ManJer is responsible for supplying or procuring the supply of all management
and administration services required by the Company, (including marketing) as well as the payment of costs
relating to the listing and issue of Commodity Securities. In return for these services, the Company has an
obligation to remunerate ManJer with an amount equal to the aggregate of the management fee, licence
allowance and the creation and redemption fees (the “ManJer Fee”). As a result, the management fee and
licence allowance are transferred directly to ManJer by the Commodity Contract Counterparties under the
terms of the Commodity Contracts and ManJer receives creation and redemption fees directly from the holders
of Commodity Securities who have entered into an authorised participant agreement with the Company
(“Authorised Participants”). Accordingly, there are no cash flows through the Company.
-2- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Review of Operations
The most recent Prospectuses were issued on 4 January 2021 (Classic and Longer Dated) and 4 January
2021 (Short and Leveraged). As at 31 December 2020, the Company had the following number of classes, in
aggregate, of Commodity Securities in issue and admitted to trading on the following exchanges:
London NYSE – NYSE- Tokyo Bolsa
Stock Borsa Deutsche Euronext Euronext Stock Mexicana
Exchange Italiana Börse Paris Amsterdam Exchange de Valores
Classic &
Longer Dated
Commodity
Securities 44 31 34 9 - 14 2
Short &
Leveraged
Commodity
Securities 30 30 18 - 4 - -
Total
Commodity
Securities 74 61 52 9 4 14 2
As at 31 December 2020, the fair value of assets under management amounted to USD 4,218.7 million (2019:
USD 2,752.4 million). The Company recognises its financial assets (Commodity Contracts) and financial
liabilities (Commodity Securities) at fair value in the Statement of Financial Position.
The Company has entered into contractual obligations to issue and redeem Commodity Securities at set prices
on each trading day. These prices are based on agreed formulae published in the Prospectuses, and are
equal to the published NAV of each class of Commodity Security.
IFRS 13 requires the Company to identify the principal market and to utilise the available price within that
principal market. The directors consider the stock exchanges where the Commodity Securities are listed to
be the principal market and as a result the fair value of the Commodity Securities is the on-exchange price as
quoted on the stock exchange demonstrating active trading with the highest trading volume on each day that
the price is obtained. As a result of the difference in valuation between Commodity Contracts and Commodity
Securities there is a mis-match between the values recognised, and the results of the Company reflect a gain
or loss on the difference between the fair value of the Commodity Contracts and the price of Commodity
Securities.
The gain or loss on Commodity Securities and Commodity Contracts is recognised through profit or loss in line
with the Company’s accounting policy. This is presented in more detail in note 8 to these financial statements.
The Company’s exposure to risk is disclosed in note 12 to the financial statements.
The Company is entitled to a management fee and licence allowance which are calculated on a daily basis,
and creation and redemption fees on the issue and redemption of Commodity Securities. During the year, the
Company generated income from creation and redemption fees, management fees and licence allowance as
follows:
2020 2019
USD USD
Creation and Redemption Fees 650,487 532,460
Management Fees and Licence Allowance 22,683,820 18,923,513
Total Fee Income 23,334,307 19,455,973
-3- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
Non-GAAP Performance Measures
Under the terms of the service agreement with ManJer, the Company accrued expenses equal to the
management fee, licence allowance and creation and redemption fees, which, after taking into account other
operating income and expenses, resulted in a result before fair value movements for the year of USD Nil (2019:
USD Nil).
As the difference in the valuation of Commodity Contracts (held to support the Commodity Securities) and
Commodity Securities would be reversed on a subsequent redemption of the Commodity Securities and
cancellation of the corresponding Commodity Contracts (as described further in note 7), the Company presents
an adjusted Statement of Profit or Loss and Other Comprehensive Income and an adjusted Statement of
Changes in Equity in note 15 of the financial statements.
Coronavirus disease (COVID-19)
The COVID-19 pandemic continues to persist and the ultimate duration of the pandemic and its short-term and
long-term impact on the global economy is unknown. National governments and supranational organisations
in multiple states continue taking steps designed to protect their populations from COVID-19, including
requiring or encouraging home working, the cancellation of sporting, cultural and other events and restricting
or discouraging gatherings of people. COVID-19 has created market turmoil and increased market volatility
generally. Mutations in the virus, a setback in vaccine distribution and negative global economic
consequences arising from the pandemic, amongst other factors, could have a future adverse impact on the
global financial markets. The steps outlined above, and public sentiment, may affect both the volatility and
prices of Commodity Contracts and hence the prices of the Commodity Securities, and such effects may be
significant and may be long-term in nature.
The directors are closely monitoring the advice and developments relating to the spread of COVID-19, which
is fluid and rapidly changing. The WisdomTree group has, and continues to implement measures to maintain
the ongoing safety and well-being of employees, whilst continuing to operate business as usual.
Going Concern
The nature of the Company’s business dictates that the outstanding Commodity Securities may be redeemed
at any time by Authorised Participants and in certain circumstances by individual holders and also, in certain
circumstances, may be compulsorily redeemed by the Company. As the redemption of Commodity Securities
will always coincide with the cancellation of an equal amount of Commodity Contracts, liquidity risk is mitigated
such that there is no residual liquidity risk. All other expenses of the Company are met by ManJer. The
directors are closely monitoring the advice and developments relating to the spread of COVID-19, particularly
with its impact on ManJer, its assets under management, and therefore its related revenue streams, in respect
of fulfilling the obligations under the services agreement. The directors consider the operations of the
Company to be ongoing, with a reasonable expectation that the Company has adequate resources to continue
in operational existence for a period of 12 months from the date of these financial statements, and accordingly
these financial statements have been prepared on the going concern basis.
Future Developments
The board of directors (the “Board”) are not aware of any developments that might have a significant effect on
the operations of the Company in subsequent financial periods not already disclosed in this report or the
attached financial statements.
Dividends
There were no dividends declared or paid in the year (2019: USD Nil). It is the Company’s policy that dividends
will only be declared when the directors are of the opinion that there are sufficient distributable reserves.
Employees
The Company does not have any employees. It is the Company’s policy to use the services of specialist
subcontractors or consultants as far as possible.
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WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Auditor
The Independent Auditor is Ernst & Young LLP. A resolution to re-appoint Ernst & Young LLP will be proposed
at the next Board meeting of the directors.
Directors’ Remuneration
No director has a service contract with the Company. The directors of the Company who are employees within
the WisdomTree Investments, Inc group do not receive separate remuneration in their capacity as directors of
the Company. R&H Fund Services (Jersey) Limited (“R&H” or the “Administrator”) receives a fee in respect of
the directors of the Company who are employees of R&H.
The following directors’ fees have been paid by ManJer on behalf of the Company for the year:
2020 2019
GBP GBP
Stuart Bell Nil Nil
Christopher Foulds (Appointed 15 April 2020) 5,685 Nil
Hilary Jones (Resigned 15 April 2020) 2,315 8,000
Steven Ross 8,000 8,000
Peter Ziemba Nil Nil
Principal Risks and Uncertainties
Each Commodity Security is a debt instrument whose redemption price is linked to the performance of the
underlying commodity index. Each class of Commodity Security is issued under limited recourse
arrangements whereby the holders have recourse only to the relevant Commodity Contracts held to support
the Commodity Securities and not to the Commodity Contracts of any other class of Commodity Security or
the Company. In addition, since any such price movements are wholly attributable to the holders of the
Commodity Securities, the Company has no residual exposure to movements in the value of the Commodity
Contracts. From a commercial perspective the Company does not retain any net gains or losses or net risk
exposures, as (with the exception of the impact of management fees and licence allowance) the gains or losses
on the liability represented by the Commodity Securities are matched economically by corresponding losses
or gains attributable to the Commodity Contracts (see detail on page 3 regarding the accounting mis-match).
The Company’s exposure to risks, including further details surrounding the value of Commodity Securities and
the Commodity Contracts are disclosed in note 12 to the financial statements.
Movements in the value of the underlying Commodity Contracts, and thus the value of the Commodity
Securities, may vary widely which could have an impact on the demand for the Commodity Securities issued
by the Company. These movements are shown in notes 7 and 8.
Additional information on other financial and operational risks and uncertainties faced by the Company are
disclosed in note 12 of these financial statements.
Corporate Governance
There is no standard code of corporate governance in Jersey. The operations, as previously described in the
Directors’ Report, are such that the directors have determined that the Company is not required to apply, and
has elected not to voluntarily apply, the UK Corporate Governance Code.
As the Board is small, there is no nomination committee and appointments of new directors are considered by
the Board as a whole. The Board does not consider it appropriate that directors should be appointed for a
specific term. Furthermore, the structure of the Board is such that it is considered unnecessary to identify a
senior non-executive director.
The constitution of the Board is disclosed on page 2. The Board meets regularly as required by the operations
of the Company, but at least quarterly to review the overall business of the Company and to consider matters
specifically reserved for its review.
-5- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Internal Control
During the year the Company did not have any employees or subsidiaries, and there is no intention that this
will change. The Company, being a special purpose company established for the purpose of issuing
Commodity Securities, has not undertaken any business, save for issuing and redeeming Commodity
Securities, entering into the required documents and performing the obligations and exercising its rights in
relation thereto, since its incorporation. The Company does not intend to undertake any business other than
issuing and redeeming Commodity Securities and performing the obligations and exercising its rights in relation
thereto.
The Company is dependent upon ManJer to provide management and administration services to it. ManJer
is licensed under the Financial Services (Jersey) Law 1998 to conduct classes U and Z of Fund Services
Business. ManJer outsources the administration services in respect of the Company to the Administrator.
Documented contractual arrangements are in place with the Administrator which define the areas where the
authority is delegated to them. The performance of the Manager and Administrator are reviewed on an ongoing
basis by the Board, through their review of periodic reports.
ManJer provides management and other services to both the Company and other companies issuing
commodity and index tracking securities.
The Board, having reviewed the effectiveness of the internal control systems of the Manager and the
Administrator, does not consider that there is a need for the Company to establish its own internal audit
function.
Audit Committee
The Board has not established a separate audit committee; instead the Board meets to consider the financial
reporting by the Company, the internal controls, and relations with the external auditor. In addition, the Board
reviews the independence and objectivity of the auditor.
Steven Ross
Director
Jersey
30 April 2021
-6- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Statement of Directors’ Responsibilities
The directors are responsible for preparing the financial statements in accordance with applicable law and
regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law
they have elected to prepare the financial statements in accordance with International Financial Reporting
Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”) and applicable law.
Under company law the directors must not approve the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that
period. In preparing these financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern; and
• use the going concern basis of accounting unless they either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that the financial statements comply with the Companies (Jersey) Law
1991. They are responsible for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error, and have
general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the
Company and to prevent and detect fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the Company’s website. Legislation in Jersey governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
With regard to Directive 2004/109/EC, amended by Directive 2013/50/EU (collectively the Transparency
Directive), the Central Bank (Investment Market Conduct) Rules of the Central Bank of Ireland and the
Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the directors confirm that to
the best of their knowledge that:
• the financial statements for the year ended 31 December 2020 give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company as required by law and in accordance
with IFRS as issued by the IASB; and
• the Directors’ Report gives a fair view of the development and performance of the Company’s
business, including financial position and the important events that have occurred during the year, and
their impact on these financial statements, together with a description of the principal risks and
uncertainties they face.
By order of the Board
Steven Ross
Director
Jersey
30 April 2021
-7- www.wisdomtree.eu
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED
Opinion
We have audited the financial statements of WisdomTree Commodity Securities Limited (the
”company”) for the year ended 31 December 2020 which comprise the Statement of Profit or Loss and
Other Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the
Statement of Changes in Equity, and the related notes 1 to 15, including a summary of significant
accounting policies. The financial reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards (“IFRS”).
In our opinion, the financial statements:
► give a true and fair view of the state of the company’s affairs as at 31 December 2020 and of its
result for the year then ended;
► have been properly prepared in accordance with IFRS; and
► have been properly prepared in accordance with the requirements of the Companies (Jersey)
Law 1991.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent of
the company in accordance with the ethical requirements that are relevant to our audit of the financial
statements, including the UK FRC’s Ethical Standard as applied to listed entities and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the
directors’ assessment of the company’s ability to continue to adopt the going concern basis of
accounting included:
How we evaluated management’s assessment
Risk assessment procedures
► We have obtained an understanding of management’s rationale for using the going concern
basis of accounting. To challenge the completeness of this assessment, we have
independently assessed whether factors exist that may indicate events or conditions that may
cast significant doubt on the entity’s ability to continue as a going concern. The events or
conditions identified were consistent with those addressed in management’s assessment and
further are explained below. We have designed our audit procedures to evaluate the effect of
these risks on the entity’s ability to continue as a going concern.
Management’s method
► In conjunction with our walkthrough of the company’s financial statement close process, we
confirmed our understanding of management’s Going Concern assessment process and also
engaged with management to challenge that all key factors were considered in their
assessment;
► We obtained management’s board approved going concern assessment covering the period
of assessment from the date of signing to 30 April 2022. Given the absence of cash
transactions or cash obligations within the company, management’s going concern
assessment has focussed on a combination of;
-8-
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
o Assessing the ongoing viability of the Company through continued involvement of its
Authorised Participants;
o Determining that no compulsory redemption triggers are expected to be encountered
during the period of assessment; and
o Assessing the ongoing viability of the wider WisdomTree Jersey Issuer platform for
which the Company is an element, with a focus on the ability of the platform to support
the Manager in meeting obligations as they fall due, through assessment of fixed and
variable operating costs that could be supported under varying levels of total assets
under management for the Issuer platform.
► Using our understanding of the business, we evaluated whether the considerations and
method adopted by management in assessing going concern was appropriate and observed
that the method was consistent with that used in the prior year
► We performed a walkthrough of the method and noted that the each of the factors had been
considered and supported by management.
► We tested that the forecasts were mathematically accurate;
► We considered the past historical accuracy of management’s assessments (prior to
Coronavirus);
► We evaluated management’s Coronavirus impact assessment on the forecasts by comparing
to the actual impact experienced by the Group in 2020;
► We inquired of management as to its knowledge of events or conditions beyond the period of
management’s assessment and reviewed industry publications to challenge and corroborate
management’s macro assumptions used in the assessment. In doing so, we also considered
the consistency of information obtained from other areas of the audit such as the changes in
assets under management in the period since the balance sheet date to the date of issuance
of the financial statements.
Assumptions
► We evaluated the relevance and reliability of the underlying data used to make the
assessment by corroborating with the information contained in audited financial statements
► We determined whether there was appropriate evidence for the ongoing involvement of the
Authorised Participant’s through enquiry with the Directors and management and confirming
no correspondence indicating otherwise from the Authorised Participant
► We determined that there was no indication of Company level redemption triggers being
initiated, through reading the relevant prospectus sections, making enquiry of the Directors
and management and reading minutes of meetings of the Board.
► For the platform cost assumptions underlying the wider platform viability considerations, we
compared these to those observed in the prior year and obtained information from the
Manager in respect of the existing platform cost base;
Stress testing and Management’s plans for future actions
► We performed reverse stress testing on the forecasts to understand how severe the downside
scenarios would have to be, and in particular the reduction in platform assets under
management, to result in the platform generating insufficient management fees to cover
operating costs;
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Disclosures
► We considered whether management’s disclosures, in the Annual Report and financial
statements, sufficiently and appropriately disclose information required in respect of the going
concern assumption applied through consideration of relevant disclosure standards.
Our key observations
We have observed:
► No communication from the Company’s Authorised Participants indicating an intention to
withdraw support or initiate any action that would trigger the termination of the company;
► No indication that compulsory redemption triggers are expected to be encountered during the
period of assessment to April 2022; and
► Significant headroom observed in management fee income, at current Assets Under
Management (“AUM”) levels, in excess of fixed costs supporting management’s assumption
that the Issuer Platform is able to absorb heightened levels of volatility in Assets Under
Management in the current economic climate.
Conclusion
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the company’s
ability to continue as a going concern over the period to 30 April 2022 being 12 months from when the
financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report. However, because not all future events or conditions
can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going
concern.
Overview of our audit approach
Key audit ► Valuation of Financial Assets at fair value through profit and loss -
matters Commodity Contracts
► Valuation of Financial Liabilities at fair value through profit and loss -
Commodity Securities
Materiality ► Overall materiality of US$42.180m which represents 1% of total assets
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality
determine our audit scope for the company. This enables us to form an opinion on the financial
statements. We take into account size, risk profile, the organisation of the company and effectiveness
of controls, including controls and changes in the business environment when assessing the level of
work to be performed. All audit work was performed directly by the audit engagement team.
Changes from the prior year
There were no changes in our audit strategy compared to the prior year.
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) that we identified. These matters included
those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context
of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide
a separate opinion on these matters.
Risk Our response to the risk Key observations
communicated to the Board
Valuation of Financial Assets We walked through the There were no matters identified
at fair value through profit and Company’s systems and during our audit work on
loss - Commodity Contracts controls implemented in respect valuation of Commodity
USD 4,218,667,859 of Commodity Contract Contracts that we wanted to
(2019: USD 2,752,376,081) valuation. In executing our bring to the attention of the
strategy we adopted a fully Board of Directors of the
Refer to the Accounting policies
(page 23); and Note 7 of the substantive audit approach. company.
Financial Statements (pages 26- Our response to the risk Based on our testing we are
27) comprised: satisfied that the valuation of the
Risk that Commodity Contract Commodity Contracts is not
Obtaining independent
values are misstated or that materially misstated
confirmation, from the
valuations are incorrectly
calculated. Commodity Contract
counterparty, of the contractual
The Commodity Contracts held value of contracts as at the
comprise a range of commodity reporting date.
derivatives that are used by the
Company to provide holders of Agreeing the valuation
issued securities with exposure methodology applied to the
that is designed to track the definition set out in the
price of commodity futures. prospectus and validating key
The Commodity Contracts are inputs used to derive the value
carried at fair value as a of the Commodity Contracts.
Financial Asset. This included agreement of the
price of referenced commodities
The risk comprises the risk of
errors in both the valuation or commodity indices to external
methodology applied (including pricing sources as at
the risk that the valuation 31 December 2020.
methodology has not been Recalculation of the value of a
determined in accordance with
sample of Commodity Contracts
the terms of the applicable
prospectus) and in the source held at 31 December 2020,
and timing of valuation inputs representing 94% of the total
utilised. value of Commodity Contracts
held.
The balance of Commodity
Contracts represents in excess
of 99% of the company’s total
assets as at 31 December 2020
(2019: 99%) and therefore any
error in valuation approach could
be significant.
The risk has remained
consistent with that observed in
the prior year.
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Risk Our response to the risk Key observations
communicated to the Audit
Committee
Valuation of Financial We walked through the There were no matters identified
Liabilities at fair value through Company’s systems and during our audit work on
profit or loss - Commodity controls implemented in respect valuation of Commodity
Securities of the valuation of Commodity Securities that we wanted to
Securities. In executing our bring to the attention of the
USD 4,186,873,094 strategy, we adopted a fully Board of Directors of the
(2019: USD2,764,472,560) substantive approach. company.
Refer to the Accounting policies Our response to the risk Based on our testing we are
(page 23); and Note 8 of the comprised: satisfied that the valuation of
Financial Statements (pages 27- Commodity Securities is not
28) An assessment of the materially misstated
company’s systems and controls
Risk that values of Commodity
implemented in respect of
Securities in issue are misstated
Commodity Security valuation.
or that valuations are incorrectly
captured.
Assessing the appropriateness
The Commodity Securities in of the valuation methodology
issue comprise a range of applied, comprising the use of
financial instruments that provide traded security prices to value
holders of issued securities with the Commodity Securities,
exposure to movements in against relevant IFRS
prices of Commodity without requirements.
needing to take physical
delivery. Independently obtaining security
prices using external pricing
The Commodity Securities are sources at the balance sheet
carried at fair value as a date.
Financial Liability.
Recalculating the value of
The risk comprises the risk of Commodity Securities held at
errors in both the valuation 31 December 2020, by
methodology applied and in the multiplying the security price by
source and timing of valuation the confirmed security balance
inputs utilised. in issue. This represented
100% of the total value of
The balance of Commodity Commodity Securities in issue.
Securities represents in excess
of 99% of the company’s total
liabilities as at 31 December
2020 (2019: 99%) and therefore
any error in valuation approach
could be significant.
The risk has remained
consistent with that observed in
the prior year.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of
identified misstatements on the audit and in forming our audit opinion.
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably
be expected to influence the economic decisions of the users of the financial statements. Materiality
provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the company to be US$42.18 million (2019: US$27.6 million), which is
1% (2019: 1%) of Total Assets. We believe that Total Assets provides us with an appropriate basis for
audit materiality as Total Assets value reflects the relevant exposure of holders of issued securities to
the underlying asset base.
In particular we have considered both the nature of the exposure to asset performance being obtained
by security holders and the expectations of the users of the financial statements by observing the
basis applied across existing WisdomTree exchange traded issuer products.
The entity is structured such that the security holders’ interests are reflected as a liability, but provide
exposure to net assets invested, with the 1% being considered appropriate in the context of such
asset exposure.
The basis is also consistent with other audited WisdomTree exchange traded issuer platforms in
Europe, where 1% of total assets has historically been applied as the basis for materiality, so we
continue to reflect this established level of user expectation for WisdomTree issuer vehicles.
There has been no change in the basis of materiality used compared to the prior year.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to
reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the company’s overall control
environment, our judgement was that performance materiality was 50% (2019: 50%) of our planning
materiality, namely US$21.090 m (2019: US$13.8m). We have set performance materiality at this
percentage in response to audit differences identified in our audit of the Company and related entities
in the prior year. We had set performance materiality at 50% of our planning materiality in the prior
year to reflect the fact that it was our initial period of involvement.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Board that we would report to them all uncorrected audit differences in excess of
US$2.109m (2019: US$1.4m), which is set at 5% of planning materiality, as well as differences below
that threshold that, in our view, warranted reporting on qualitative grounds. The basis of determining
the amount remains consistent with that applied in the prior year at 5% of planning materiality.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality
discussed above and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report set out on pages 1 to 7,
including the Directors’ Report set out on pages 2 to 6 and the Statement of Directors Responsibilities
set out on page 7, other than the financial statements and our auditor’s report thereon. The directors
are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
-13-
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether there is a
material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of the other information, we are required
to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies
(Jersey) Law 1991 requires us to report to you if, in our opinion:
► proper accounting records have not been kept by the company, or proper returns adequate for our
audit have not been received from branches not visited by us; or
► the financial statements are not in agreement with the company’s accounting records and returns;
or
► we have not received all the information and explanations we require for our audit
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 7, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true
and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The
risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion. The extent to which our procedures are capable
of detecting irregularities, including fraud is detailed below.
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the company and management.
► We obtained an understanding of the legal and regulatory frameworks that are applicable to
the company and determined that the most significant are those that relate to the reporting
framework, comprising IFRS and Companies (Jersey) Law 1991. In addition, we concluded
that there are certain significant laws and regulations that may have an effect on the
presentation and disclosure of the financial statements being the applicable Listing Rules of
the UK Listing Authority.
► We understood how WisdomTree Commodity Securities Limited is complying with those
frameworks by making enquiries of the directors and key management of the administrative
service provider. We corroborated our enquiries through our review of minutes of Board
meetings, papers provided to the board and correspondence received from regulatory bodies
and noted no contradictory evidence.
► We assessed the susceptibility of the company’s financial statements to material
misstatement, including how fraud might occur by understanding the investment objectives of
the Company and discussing with management to understand where reporting was
considered susceptible to fraud. Where this risk was considered to be higher, we performed
audit procedures in response to the identified fraud risk. These procedures included testing of
transactions to supporting documentation, testing of specific accounting journal entries and
focussed testing, including that referred to in the key audit matters section above. These
procedures were designed to provide reasonable assurance that the financial statements were
free from fraud or error.
► Based on this understanding we designed our audit procedures to identify non-compliance
with such laws and regulations. Our procedures involved a review of board minutes to identify
any non-compliance with laws and regulations, a review of any associated reporting submitted
to the board on compliance with laws and regulations and enquiries of members of
management of the appointed administrative service provider.
► As the Company operates in the asset management industry the Audit Partner reviewed the
experience of the engagement team and concluded that the team had the appropriate
competence and capabilities.
A further description of our responsibilities for the audit of the financial statements is located on
the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Article 113A of
the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Christopher David Gordon Barry, FCA
for and on behalf of Ernst & Young LLP
Jersey, Channel Islands
Date: 30 April 2021
-15-
WisdomTree Commodity Securities Limited
Statement of Profit or Loss and Other Comprehensive Income
Year ended 31 December
2020 2019
Notes USD USD
Income 3 23,334,307 19,455,973
Expenses 3 (23,334,307) (19,455,973)
Result Before Fair Value Movements 3 - -
Change in Contractual and Fair Value of Commodity
Contracts 7 1,132,592,522 525,723,270
Change in Fair Value of Commodity Securities 8 (1,088,701,278) (508,686,187)
Profit for the Year1, 2 8 43,891,244 17,037,083
The directors consider the Company’s activities as continuing.
1
A non-statutory and non-GAAP Statement of Profit or Loss and Other Comprehensive Income reflecting adjustments
representing the movement in the difference between the value of the Commodity Contracts and the price of Commodity
Securities is set out in note 15.
2 There are no items of Other Comprehensive Income, therefore the Profit for the Year also represented the Total
Comprehensive Income for the Year.
The notes on pages 20 to 36 form part of these financial statements
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WisdomTree Commodity Securities Limited
Statement of Financial Position
As at 31 December
2020 2019
Notes USD USD
Assets
Commodity Contracts 7 4,218,667,859 2,752,376,081
Amounts Receivable on Commodity Contracts
Awaiting Settlement 7 15,365,725 6,742,276
Amounts Receivable on Commodity Securities
Awaiting Settlement 8 8,834,934 5,271,900
Trade and Other Receivables 6 3,585,255 2,528,332
Total Assets 4,246,453,773 2,766,918,589
Liabilities
Commodity Securities 8 4,186,873,094 2,764,472,560
Amounts Payable on Commodity Securities Awaiting
Settlement 8 15,365,725 6,742,276
Amounts Payable on Commodity Contracts Awaiting
Settlement 7 8,834,934 5,271,900
Trade and Other Payables 9 3,585,253 2,528,330
Total Liabilities 4,214,659,006 2,779,015,066
Equity
Stated Capital 10 2 2
Revaluation Reserve 31,794,765 (12,096,479)
Total Equity 31,794,767 (12,096,477)
Total Equity and Liabilities 4,246,453,773 2,766,918,589
The assets and liabilities in the above Statement of Financial Position are presented in order of liquidity from
most to least liquid.
The financial statements on pages 16 to 36 were approved and authorised for issue by the board of directors
and signed on its behalf on 30 April 2021.
Steven Ross
Director
The notes on pages 20 to 36 form part of these financial statements
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WisdomTree Commodity Securities Limited
Statement of Cash Flows
Year ended 31 December
2020 2019
USD USD
Profit for the Year 43,891,244 17,037,083
Non-cash Reconciling Items
Change in Contractual and Fair Value of Commodity
Contracts (1,132,592,522) (525,723,270)
Change in Fair Value of Commodity Securities 1,088,701,278 508,686,187
- -
Cash Generated from Operating Activities - -
Net Movement in Cash and Cash Equivalents - -
Cash and Cash Equivalents at the Beginning of the
Year - -
Net Movement in Cash and Cash Equivalents - -
Cash and Cash Equivalents at the End of the Year - -
Commodity Securities are issued through a direct transfer of cash from the Authorised Participants to the
Commodity Contract Counterparties or redeemed by the direct transfer of cash by the Commodity Contract
Counterparties to the Authorised Participants. As such the Company is not a party to any cash transactions.
The creations and redemptions of Commodity Securities and creations and cancellations of Commodity
Contracts, which are non-cash transactions for the Company, are disclosed in notes 7 and 8 respectively in
the reconciliation of opening to closing Commodity Securities and Commodity Contracts.
The Company has entered into a service agreement with WisdomTree Management Jersey Limited (“ManJer”
or the “Manager”), whereby ManJer is responsible for supplying or procuring the supply of all management
and administration services required by the Company, (including marketing) as well as the payment of costs
relating to the listing and issue of Commodity Securities. In return for these services, the Company has an
obligation to remunerate ManJer with an amount equal to the aggregate of the management fee, licence
allowance and the creation and redemption fees (the “ManJer Fee”). As a result, the management fee and
licence allowance are transferred directly to ManJer by the Commodity Contract Counterparties under the
terms of the Commodity Contracts and ManJer receives creation and redemption fees directly from the
Authorised Participants. Accordingly, there are no cash flows through the Company.
The notes on pages 20 to 36 form part of these financial statements
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WisdomTree Commodity Securities Limited
Statement of Changes in Equity
Stated Retained Revaluation Total
Capital Earnings Reserve Equity
Notes USD USD USD USD
Opening Balance at 1 January 2019 2 - (29,133,562) (29,133,560)
Result and Total Comprehensive Income for the Year - 17,037,083 - 17,037,083
Transfer to Revaluation Reserve 15 - (17,037,083) 17,037,083 -
Balance at 31 December 2019 2 - (12,096,479) (12,096,477)
Opening Balance at 1 January 2020 2 - (12,096,479) (12,096,477)
Result and Total Comprehensive Income for the Year - 43,891,244 - 43,891,244
Transfer to Revaluation Reserve 15 - (43,891,244) 43,891,244 -
Balance at 31 December 20203 2 - 31,794,765 31,794,767
3A non-statutory and non-GAAP Statement of Changes in Equity reflecting adjustments representing the difference between the value of Commodity Contracts and the price of
Commodity Securities is set out in note 15.
The notes on pages 20 to 36 form part of these financial statements
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements
1. General Information
WisdomTree Commodity Securities Limited (the “Company”) is a company incorporated and domiciled in
Jersey. The address of the registered office is Ordnance House, 31 Pier Road, St. Helier, Jersey, JE4 8PW.
The purpose of the Company is to provide a vehicle that facilitates the issuance and subsequent listing and
trading of securities that track the performance of commodity futures (“Commodity Securities”). Commodity
Securities are backed by commodity contracts (“Commodity Contracts”) with terms corresponding to the terms
of Commodity Securities. Each class of Commodity Security is issued under limited recourse arrangements
whereby the holders have recourse only to the relevant Commodity Contracts held to support the Commodity
Securities and not to the Commodity Contracts of any other class of Commodity Security or to the Company.
The Company does not make gains from trading in the underlying Commodity Contracts. As a result, (and
with the exception of the impact of management fees and licence allowance), from a commercial perspective
gains and losses in respect of Commodity Contracts will always be offset by a corresponding loss or gain on
the Commodity Securities and therefore commercially the Company does not retain any net gains or losses or
net risk exposures. However, the difference in valuation between Commodity Contracts and Commodity
Securities creates a mis-match between values reported within these financial statements. This difference in
valuation would be reversed on a subsequent redemption of the Commodity Securities and cancellation of the
corresponding Commodity Contracts. Further details are disclosed within the Accounting Policies and in note
15, with additional information regarding the risks of the Company disclosed in note 12. Furthermore, the
Company presents an adjusted Statement of Profit or Loss and Other Comprehensive Income and an adjusted
Statement of Changes in Equity in note 15 of the financial statements to reflect the economic results of the
Company through the reversal of the difference in valuation between Commodity Contracts and Commodity
Securities given the gain or loss would be reversed on a subsequent redemption of the Commodity Securities
and transfer of the corresponding Commodity Contracts, and therefore will not be realised.
Exchange-traded products are not typically actively managed, are significantly lower in cost when compared
to actively managed mutual funds and are easily accessible to investors. No trading or management of futures
contracts is required of the Company because the Company has entered into arrangements to acquire an
equivalent asset exposure represented by the Commodity Securities from third parties which fully hedges the
exposure of the Company.
The Company is entitled to:
(1) a management fee and a licence allowance which are calculated by applying a fixed percentage to
the Contractual Value of Commodity Securities in issue on a daily basis (the “Management Fee and
Licence Allowance”); and
(2) creation and redemption fees on the issue and redemption of the Commodity Securities.
No creation or redemption fees are payable to the Company when investors trade in the Commodity Securities
on a listed market such as the London Stock Exchange. Creation and redemption fees may also be waived
with certain approved persons where applicable.
The Company has entered into a service agreement with WisdomTree Management Jersey Limited (“ManJer”
or the “Manager”), whereby ManJer is responsible for supplying or procuring the supply of all management
and administration services required by the Company (including marketing), as well as the payment of costs
relating to the listing and issuance of Commodity Securities. In return for these services the Company pays
ManJer an amount equal to the management fee, licence allowance and the creation and redemption fees
earned (the “ManJer Fee”). As a result, the Company recognises a result before fair value movements of nil
for each period.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies
The main accounting policies of the Company are described below.
Basis of Preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRSs”) as issued by the International Accounting Standards Board (“IASB”), and interpretations issued by
the International Financial Reporting Interpretations Committee of the IASB. The financial statements have
been prepared under the historical cost convention, as modified by the revaluation of financial assets and
financial liabilities held at fair value through profit or loss.
Critical Accounting Estimates and Judgements
The presentation of financial statements in conformity with IFRSs requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Company’s
accounting policies.
The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities.
Estimates are continually evaluated and based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. The key accounting
judgement required to prepare these financial statements is in respect of the presentation of non-statutory and
non-GAAP adjustments to the Statement of Profit or Loss and Other Comprehensive Income and the
Statement of Changes in Equity, as disclosed in note 15.
The directors do not consider that any significant estimates have been applied in the preparation of these
financial statements.
Going Concern
The nature of the Company’s business dictates that the outstanding Commodity Securities may be redeemed
at any time by Authorised Participants and in certain circumstances by individual holders and also, in certain
circumstances, may be compulsorily redeemed by the Company. As the redemption of Commodity Securities
will always coincide with the cancellation of an equal amount (in value) of Commodity Contracts, and
furthermore, the Company will hold the Commodity Contracts to support the Commodity Securities issued and
will only cancel Commodity Contracts on the redemption of Commodity Securities, liquidity risk is mitigated
such that there is no residual liquidity risk. All other expenses of the Company are met by ManJer. The
directors are closely monitoring the advice and developments relating to the spread of COVID-19, particularly
with its impact on ManJer, its assets under management, and therefore its related revenue streams, in respect
of fulfilling the obligations under the services agreement in place. The directors consider the operations of the
Company to be ongoing, with a reasonable expectation that the Company has adequate resources to continue
in operational existence for a period of 12 months from the date of these financial statements, and accordingly
these financial statements have been prepared on the going concern basis.
Accounting Standards
(a) Standards, amendments and interpretations adopted in the year:
In preparing the financial statements the Company has adopted all new or revised Standards and
Interpretations in issue and effective for the year, including:
• Amendments to IAS 1 Presentation of Financial Statements
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
The changes to IAS 1 & 8 are changes regarding the definition of material and therefore are applicable
to the Company, however these are not considered to have resulted in a significant effect on these
financial statements.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Accounting Standards (continued)
(b) Standards, amendments and interpretations not applicable to the Company:
The following standards that have been revised, issued and became effective but are not considered
applicable to the Company:
• Amendments to IFRS 3 Business Combinations
• Amendments to IFRS 7 Financial Instruments: Disclosures
• Amendments to IFRS 9 Financial Instruments
• Amendments to IAS 39 Financial Instruments: Recognition and Measurement
The directors consider that the adoption of the above standards, amendments and interpretations did not
have a material impact on the financial statements of the Company on the basis that the changes to IFRS
7, IFRS 9 and IAS 39 are pre-replacement issues in the context of the Interbank Offered Rate (or IBOR)
reform in respect of hedge accounting.
(c) New and revised IFRSs in issue but not yet effective:
The Company has not applied the following new and revised IFRSs that have been issued but are not
yet effective:
• Amendments to IFRS 16 Leases (effective for annual periods beginning on or after 1 June 2020)
• IFRS 17 Insurance Contracts (effective for annual periods beginning on or after 1 January 2023)
• Amendments to IAS 1 Presentation of Financial Statements (effective for annual periods beginning
on or after 1 January 2023)
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (effective
for annual periods beginning on or after 1 January 2023)
• Amendments to IAS 16 Property, Plant and Equipment (effective for annual periods beginning on or
after 1 January 2022)
• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets (effective for annual
periods beginning on or after 1 January 2022)
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 to address the accounting issues that
arise when financial instruments are modified from referencing an IBOR
• Annual Improvements to IFRS (impacting IFRS 1, IFRS 9 and IAS 41)
The directors are working through an assessment of the potential impact of the IBOR reforms
(amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) on the Commodity Contracts and
Commodity Securities, including within the underlying indices. As described in note 11, the pricing of the
Commodity Contracts or the Commodity Securities takes into account the incremental capital
enhancement component of the Commodity Security, which includes the impact of interest rates. This
incremental capital enhancement component of the Commodity Contracts and Commodity Securities is
attributable to the security holder and whilst this may impact the future values of the Commodity Contracts
and Commodity Securities, there will be no residual exposure to the Company.
The directors do not expect the adoption of the remaining standards, amendments and interpretations
that are in issue but not yet effective will have a material impact on the financial statements of the
Company in future periods.
The directors have considered other standards and interpretations in issue but not effective and concluded
that they would not have a material impact on the future financial periods when they become available.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Commodity Securities and Commodity Contracts
i) Issue and Redemption
Each time a Commodity Security is issued or redeemed by the Company a corresponding number and
value of Commodity Contracts are created or cancelled with Citigroup Global Markets Limited
(“Citigroup”) and Merrill Lynch International (“Merrill Lynch”) (collectively the “Commodity Contract
Counterparties”). The Commodity Contracts represent the financial assets of the Company and the
Commodity Securities give rise to the financial liabilities. Upon initial recognition, the fair value is
recorded using the price calculated based on the formula set out in the Prospectus, referred to as the
“Contractual Value” (see below).
Financial assets and liabilities are recognised and de-recognised on the transaction (trade) date.
ii) Classification at fair value through Profit or Loss
Each Commodity Security and Commodity Contract comprises a financial instrument whose redemption
or cancellation price is linked to the performance of the relevant commodity index adjusted by the
applicable fees and expenses.
The Commodity Contracts are classified as financial assets at fair value through profit or loss under
IFRS 9 and the Commodity Securities held are classified as financial liabilities measured at fair value
through profit or loss under IFRS 9 to significantly reduce a measurement or recognition inconsistency
that would otherwise arise from measuring assets or liabilities, or recognising the gains and losses on
them, on different bases.
iii) Pricing
The Commodity Contracts are priced by reference to the value of the commodity indices calculated and
published by Bloomberg L.P. or Bloomberg Finance L.P. (together “Bloomberg”) and a multiplier
calculated by the Company and agreed with the Commodity Contract Counterparties. The multiplier
takes into account the daily accrual of the Management Fee and Licence Allowance and swap spread
as well as the capital adjustment component of the Commodity Security, and is the same across all
Commodity Securities of the same type (i.e. all classic Commodity Securities use the same multiplier).
This price (the Contractual Value calculated based on the formula set out in the Prospectus) is
considered to be the fair value of the Commodity Contracts.
IFRS 13 requires the Company to identify the principal market and to utilise the available price within
that principal market. The directors consider the stock exchanges where the Commodity Securities are
listed to be the principal market and as a result the fair value of the Commodity Securities is the on-
exchange price as quoted on the stock exchange demonstrating active trading with the highest trading
volume on each day that the price is obtained. The Commodity Securities are priced using the closing
mid-market price on the Statement of Financial Position date.
Consequently, a difference arises between the value of Commodity Contracts (held to support the
Commodity Securities) and Commodity Securities (at market value) presented in the Statement of
Financial Position. This difference is reversed on a subsequent redemption of the Commodity Securities
and cancellation of the corresponding Commodity Contracts.
Commodity Contracts and Securities Awaiting Settlement
The issue and redemption of Commodity Securities, and the creation or cancellation of Commodity Contracts,
is accounted for on the transaction date. The transaction will not settle until two days after the transaction
date. Where transactions are awaiting settlement at the year end, the value of the Commodity Contracts and
the Commodity Securities due to be settled is separately disclosed within the relevant assets and liabilities on
the Statement of Financial Position. The fair value of these receivables and payables is considered equivalent
to their carrying value.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Other Financial Assets and Liabilities
Other financial assets and liabilities are non-derivative financial assets and liabilities including trade and other
receivables and trade and other payables with a fixed payment amount and are not quoted in an active market.
After initial measurement the other financial assets and liabilities are subsequently measured at amortised cost
using the effective interest method less any allowance for expected credit losses. The effective interest method
is a method of calculating the amortised cost of an instrument and of allocating interest over the relevant
period. The effective interest rate is the rate that exactly discounts estimated future cash flows (including all
fees paid or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the instrument, or, where appropriate, a shorter period, to
the net carrying amount on initial recognition. Impairment losses, including reversals of impairment losses and
impairment gains, are recorded through profit or loss.
Reserves
A revaluation reserve and a retained earnings reserve are maintained within equity. All profit or loss is taken
to the retained earnings reserve at the end of the accounting period to which it relates and the gain or loss
relating to the mis-match of accounting values is transferred to the non-distributable revaluation reserve as the
balance relates to unrealised gains and losses on Commodity Contracts (held to support the Commodity
Securities) and Commodity Securities, which will be reversed on a subsequent redemption of the Commodity
Securities and the related cancellation of Commodity Contracts and will therefore not be realised.
Income
The Company derives its income over time (in respect of management fees), and at a point in time (in respect
of creation and redemption fees) as follows:
i) Management Fees and Licence Allowance
Management Fees and Licence Allowance are calculated by applying a fixed percentage to the
Contractual Value of Commodity Securities in issue on a daily basis in accordance with the terms of the
securities issued. The Management Fees and Licence Allowance are accrued and recognised on a daily
basis and are invoiced and settled on a monthly basis.
ii) Creation and Redemption Fees
Fees for the issue and redemption of Commodity Securities are recognised at the fair value of the
consideration expected to be received, on the date on which the transaction becomes legally binding.
Accrued creation and redemption fees are invoiced and settled on a quarterly basis.
Foreign Currency
The financial statements of the Company are presented in the currency in which the majority of the Commodity
Securities issued by the Company are denominated (its functional currency). For the purpose of the financial
statements, the results and financial position of the Company are expressed in United States Dollars, which is
the functional currency of the Company, and the presentational currency of the financial statements.
Transactions in foreign currencies are initially recorded at the spot rate at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the year-end date are translated at rates ruling at
that date. Creation and redemption fees are translated at the average rate for the month in which they are
incurred. The resulting differences are accounted for through profit or loss.
Segmental Reporting
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the
Company that are regularly reviewed by the Chief Operating Decision Maker (“CODM”) in order to allocate
resources to the segments and to assess their performance. The CODM has been determined as the board
of directors. A segment is a distinguishable component of the Company that is engaged either in providing
products or services (business segment), or in providing products and services within a particular economic
environment (geographical segment), which is subject to risks and rewards that are different from those of
other segments.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Segmental Reporting (continued)
The Company reports information on its operations for each of the Company’s business segments only, as the
Company only has one geographic segment which is Europe. In addition, the Company has no single major
customer from which greater than 10% of income is generated. The directors believe that there are two
segments comprising Classic & Longer Dated and Short & Leveraged – results of each are disclosed
separately in note 5.
3. Result Before Fair Value Movements
Result Before Fair Value Movements for the year comprised:
Year ended 31 December
2020 2019
USD USD
Management Fees 20,793,782 17,342,309
Licence Allowance 1,890,038 1,581,204
Creation and Redemption Fees 650,487 532,460
Total Income 23,334,307 19,455,973
ManJer Fees (23,334,307) (19,455,973)
Total Operating Expenses (23,334,307) (19,455,973)
Result Before Fair Value Movements - -
Audit Fees for the year of GBP 28,730 will be met by ManJer (2019: GBP 25,130).
4. Taxation
The Company is subject to Jersey Income Tax. During the year the Jersey Income Tax rate applicable to the
Company is zero percent (2019: zero percent).
5. Segmental Reporting
The Company has two operating segments; Classic & Longer Dated and Short & Leveraged Commodity
Securities in issue. The Company earns income from each of these sources.
For the year ended Classic & Short &
31 December 2020: Longer Dated Leveraged Total
USD USD USD
Management Fees 13,240,526 7,553,256 20,793,782
Licence Allowance 1,204,495 685,543 1,890,038
Creation and Redemption Fees 333,767 316,720 650,487
Total Income 14,778,788 8,555,519 23,334,307
Total Operating Expenses (14,778,788) (8,555,519) (23,334,307)
Segmental Result - - -
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
5. Segmental Reporting (continued)
For the year ended Classic & Short &
31 December 2019: Longer Dated Leveraged Total
USD USD USD
Management Fees 13,649,310 3,692,999 17,342,309
Licence Allowance 1,392,786 188,418 1,581,204
Creation and Redemption Fees 304,370 228,090 532,460
Total Income 15,346,466 4,109,507 19,455,973
Total Operating Expenses (15,346,466) (4,109,507) (19,455,973)
Segmental Result - - -
Additional information relating to the assets and liabilities associated with these Commodity Securities is
disclosed in notes 7 and 8.
6. Trade and Other Receivables
As at 31 December
2020 2019
USD USD
Management Fee and Licence Allowance 3,249,852 2,366,979
Creation and Redemption Fees 335,401 161,351
Receivable from Related Party 2 2
3,585,255 2,528,332
The fair value of these receivables is equal to the carrying value. The Trade and Other Receivables are due
to be recovered within 12 months of the year end.
7. Commodity Contracts
31 December 2020 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Contracts 888,010,083 3,717,287,350
Short & Leveraged Commodity Contracts 244,582,439 501,380,509
Total Commodity Contracts 1,132,592,522 4,218,667,859
31 December 2019 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Contracts 448,431,166 2,474,746,715
Short & Leveraged Commodity Contracts 77,292,104 277,629,366
Total Commodity Contracts 525,723,270 2,752,376,081
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
7. Commodity Contracts (continued)
As at 31 December 2020, there were certain Commodity Contracts awaiting settlement in respect of the
creation or redemption of Securities with transaction dates before the year end and settlement dates in the
following year:
• The amount receivable on Commodity Contracts as a result of unsettled redemptions of Commodity
Securities is USD 15,365,725 (2019: USD 6,742,276).
• The amount payable on Commodity Contracts as a result of unsettled creations of Commodity
Securities is USD 8,834,934 (2019: USD 5,271,900).
The below reconciliation of changes in the Commodity Contracts includes only non-cash changes.
Year ended 31 December
2020 2019
USD USD
Opening Commodity Contracts 2,752,376,081 3,091,983,052
Additions 7,784,655,038 4,618,568,799
Disposals (7,428,271,962) (5,464,975,527)
Management Fee and Licence Allowance (22,683,820) (18,923,513)
Change in Fair Value 1,132,592,522 525,723,270
Closing Commodity Contracts 4,218,667,859 2,752,376,081
8. Commodity Securities
Whilst the Commodity Securities are quoted on the open market, the Company’s ultimate liability relates to its
contractual obligations to issue and redeem Commodity Securities at set prices on each trading day. These
prices are based on agreed formulae, and are equal to the published net asset values (“NAV”) of each class
of Commodity Security. Therefore, the actual contractual issue and redemption of Commodity Securities occur
at a price that corresponds to the fair value of the Commodity Contracts. As a result, the Company has no net
exposure to gains or losses on the Commodity Securities and Commodity Contracts.
The Company measures the Commodity Securities at their fair value in accordance with IFRS 13 rather than
at the Contractual Value (as described in the Prospectus). The fair value is the price quoted on stock
exchanges or other markets where the Commodity Securities are listed or traded.
The fair values and changes thereof during the year based on prices available on the open market as
recognised in the financial statements are:
31 December 2020 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Securities (852,686,790) 3,691,792,503
Short & Leveraged Commodity Securities (236,014,488) 495,080,591